<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the period ended June 30, 1995
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or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 [No Fee Required]
For the transition period from ___________________ to ___________________
Commission File Number 0-14476
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PS PARTNERS V, LTD., a California Limited Partnership
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(Exact name of registrant as specified in its charter)
California 95-3979727
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
600 North Brand Blvd.
Glendale, California 91203-1241
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (818) 244-8080
--------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No _____
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<PAGE>
INDEX
PART I. FINANCIAL INFORMATION
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<S> <C>
Condensed consolidated balance sheets at June 30, 1995
and December 31, 1994 2
Condensed consolidated statements of income for the three and
six months ended June 30, 1995 and 1994 3
Condensed consolidated statements of cash flows for the six
months ended June 30, 1995 and 1994 4
Notes to condensed consolidated financial statements 5
Management's discussion and analysis of financial condition
and results of operations 6-8
PART II. OTHER INFORMATION
(Items 1 through 5 are not applicable)
Item 6 - Exhibits and Reports on Form 8-K 9
</TABLE>
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PS PARTNERS V, LTD.,
a California Limited Partnership
CONDENSED CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
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(Unaudited)
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 2,466,000 $ 1,794,000
Rent and other receivables 66,000 73,000
Real estate facilities, at cost:
Land 25,610,000 25,610,000
Buildings and equipment 78,346,000 78,024,000
------------ ------------
103,956,000 103,634,000
Less accumulated depreciation (30,609,000) (28,852,000)
------------ ------------
73,347,000 74,782,000
Other assets 168,000 169,000
------------ ------------
$ 76,047,000 $ 76,818,000
============ ============
LIABILITIES AND PARTNERS' EQUITY
Accounts payable $ 491,000 $ 662,000
Advance payments from renters 451,000 462,000
Mortgage notes payable 2,956,000 2,976,000
Minority interest in general
partnerships 30,402,000 30,256,000
Partners' equity:
Limited partners' equity, $500 per
unit, 148,000 units authorized,
issued and outstanding 41,233,000 41,942,000
General partners' equity 514,000 520,000
------------ ------------
Total partners' equity 41,747,000 42,462,000
------------ ------------
$ 76,047,000 $ 76,818,000
============ ============
</TABLE>
See accompanying notes.
2
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PS PARTNERS V, LTD.,
a California Limited Partnership
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUE:
Rental income $3,918,000 $3,834,000 $7,791,000 $7,526,000
Interest income 31,000 6,000 60,000 9,000
---------- ---------- ---------- ----------
3,949,000 3,840,000 7,851,000 7,535,000
---------- ---------- ---------- ----------
COSTS AND EXPENSES:
Cost of operations 1,234,000 1,211,000 2,469,000 2,429,000
Management fees 226,000 221,000 450,000 435,000
Depreciation and amortization 872,000 861,000 1,757,000 1,805,000
Interest expense 73,000 73,000 146,000 147,000
Administrative 27,000 56,000 67,000 90,000
---------- ---------- ---------- ----------
2,432,000 2,422,000 4,889,000 4,906,000
---------- ---------- ---------- ----------
Income before minority interest 1,517,000 1,418,000 2,962,000 2,629,000
Minority interest in income 860,000 569,000 1,684,000 1,342,000
---------- ---------- ---------- ----------
NET INCOME $ 657,000 $ 849,000 $1,278,000 $1,287,000
========== ========== ========== ==========
Limited partners' share of net income
($7.21 per unit in 1995 and $7.28
per unit in 1994) $1,067,000 $1,077,000
General partners' share of net income 211,000 210,000
---------- ----------
$1,278,000 $1,287,000
========== ==========
</TABLE>
See accompanying notes.
3
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PS PARTNERS V, LTD.,
a California Limited Partnership
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
--------------------------
1995 1994
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,278,000 $ 1,287,000
Adjustments to reconcile net
income to net cash provided by
operating activities
Depreciation and amortization 1,757,000 1,805,000
Decrease in rent and other
receivables 7,000 10,000
Decrease (increase) in other
assets 1,000 (5,000)
Decrease in accounts payable (171,000) (257,000)
Decrease in advance payments
from renters (11,000) (53,000)
Minority interest in income 1,684,000 1,342,000
----------- -----------
Total adjustments 3,267,000 2,842,000
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Net cash provided by
operating activities 4,545,000 4,129,000
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CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to real estate facilities (322,000) (241,000)
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Net cash used in
investing activities (322,000) (241,000)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on mortgage
notes payable (20,000) (18,000)
Distributions to holder of
minority interest (1,538,000) (1,515,000)
Distributions to partners (1,993,000) (1,993,000)
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Net cash used in
financing activities (3,551,000) (3,526,000)
----------- -----------
Net increase in cash and cash
equivalents 672,000 362,000
Cash and cash equivalents at the
beginning of the period 1,794,000 657,000
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Cash and cash equivalents at the end of
the period $ 2,466,000 $ 1,019,000
=========== ===========
</TABLE>
See accompanying notes.
4
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PS PARTNERS V, LTD.,
a California Limited Partnership
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
(UNAUDITED)
1. The accompanying unaudited condensed consolidated financial statements have
been prepared pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to
such rules and regulations, although management believes that the disclosures
contained herein are adequate to make the information presented not
misleading. These unaudited condensed consolidated financial statements
should be read in conjunction with the financial statements and related notes
appearing in the Partnership's Form 10-K for the year ended December 31,
1994.
2. In the opinion of management, the accompanying unaudited condensed
consolidated financial statements reflect all adjustments, consisting of only
normal accruals, necessary to present fairly the Partnership's financial
position at June 30, 1995, the results of operations for the three and six
months ended June 30, 1995 and 1994 and cash flows for the six months then
ended.
3. The results of operations for the three and six months ended June 30, 1995
are not necessarily indicative of the results to be expected for the full
year.
5
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PS PARTNERS V, LTD.,
a California Limited Partnership
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations:
----------------------
THREE AND SIX MONTHS ENDED JUNE 30, 1995 COMPARED TO THREE AND SIX MONTHS ENDED
JUNE 30, 1994:
The Partnership's net income for the six months ended June 30, 1995 was
$1,278,000 compared to $1,287,000 for the six months ended June 30, 1994,
representing a decrease of $9,000. Net income for the three months ended June
30, 1995 was $657,000 compared to $849,000 for the three months ended June 30,
1994, representing a decrease of $192,000. These decreases were primarily due
to increased minority interest in income for those properties held in joint
venture with Storage Equities, Inc. ("SEI"), partially offset by increased
operating results at the Partnership's facilities combined with an increase in
interest income.
Rental income was $7,791,000 compared to $7,526,000 for the six months ended
June 30, 1995 and 1994, respectively, representing an increase of $265,000, or
4%. Rental income at the Partnership's mini-warehouse facilities increased from
$5,832,000 in 1994 to $6,083,000 for the six months ended June 30, 1995,
representing an increase of $251,000 or 4%. Rental income at the Partnership's
business park facilities increased from $1,694,000 in 1994 to $1,708,000 for the
six months ended June 30, 1995, representing an increase of $14,000 or 1%. The
increase in rental income at the business park facilities is principally due to
the buyout of a lease ($37,000) by a tenant which vacated its leased space prior
to the termination of the lease at one of the facilities, partially offset by
the resulting decrease in occupancy levels.
Rental income was $3,918,000 compared to $3,834,000 for the three months
ended June 30, 1995 and 1994, respectively, representing an increase of $84,000,
or 2%. Rental income at the Partnership's mini-warehouse facilities increased
from $2,965,000 to $3,088,000 for the three months ended June 30, 1994 and 1995,
respectively, representing an increase of $123,000 or 4%. Rental income at the
Partnership's business park facilities decreased from $869,000 to $830,000 for
the three months ended June 30, 1994 and 1995, respectively, representing a
decrease of $39,000 or 4%. This decrease is principally due to decreased
occupancy levels resulting from the lease buyout prior to the termination of the
lease at one of the facilities.
The weighted average occupancy levels at the mini-warehouse and business park
facilities were 92% and 94%, respectively, for the six months ended June 30,
1995 compared to 92% and 96%
6
<PAGE>
PS PARTNERS V, LTD.,
a California Limited Partnership
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
respectively, for the six months ended June 30, 1994. The monthly average
realized rent per square foot for the mini-warehouse and business park
facilities was $.62 and $1.37, respectively, for the six months ended June 30,
1995 and $.59 and $1.34, respectively, for the six months ended June 30, 1994.
Cost of operations (including management fees) was $2,919,000 and $2,864,000
for the six months ended June 30, 1995 and 1994, respectively, representing an
increase of $55,000, or 2%. This increase was primarily attributable to
increases in payroll expense, management fees, and insurance expense, partially
offset by a decrease in lease commissions. Cost of operations (including
management fees) increased $28,000, or 2% to $1,460,000 from $1,432,000 for the
three months ended June 30, 1995 and 1994, respectively. This increase was
primarily attributable to increases in payroll expense and utilities expense.
Interest expense decreased approximately $1,000 from $147,000 to $146,000 for
the six months ended June 30, 1994 and 1995, respectively, as a result of
overall debt reduction.
Minority interest in income increased $342,000 to $1,684,000 from $1,342,000
for the six months ended June 30, 1995 and 1994, respectively. Minority
interest in income increased $291,000 to $860,000 from $569,000 for the three
months ended June 30, 1995 and 1994, respectively. These increases were
primarily attributable to increased operations at the Partnership's real estate
facilities for those properties owned jointly with SEI, combined with the
allocation of depreciation and amortization expense (pursuant to the partnership
agreement with respect to those real estate facilities which are jointly owned
with SEI) to SEI of $257,000 for the six months ended June 30, 1994 (none in
1995).
Liquidity and Capital Resources
-------------------------------
The Partnership has adequate sources of cash to finance its operations, both
on a short-term and long-term basis, primarily from internally generated cash
from property operations and cash reserves. Cash generated from operations
($4,545,000 for the six months ended June 30, 1995) has been sufficient to meet
all current obligations of the Partnership.
During 1995, the Partnership anticipates approximately $1,019,000 of capital
improvements (of which $265,000 represents SEI's joint venture share). Total
capital improvements were $322,000 for the six months ended June 30, 1995 of
which $245,000 represents the Partnership's share.
7
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PS PARTNERS V, LTD.,
a California Limited Partnership
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Partnership paid distributions to the limited and general partners
totaling $1,776,000 ($12.00 per unit) and $217,000, respectively, during the
first six months of 1995. Future distribution rates may be adjusted to levels
which are supported by operating cash flow after capital improvements and any
other necessary obligations.
8
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PART II. OTHER INFORMATION
ITEMS 1 through 5 are not applicable.
Item 6 Exhibits and Reports on Form 8-K
--------------------------------
(a) The following Exhibits are included herein:
(27) Financial Data Schedule
(b) Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DATED: August 8, 1995
PS PARTNERS V, LTD.,
a California Limited Partnership
BY: Storage Equities, Inc.
General Partner
BY: /s/ Ronald L. Havner, Jr.
----------------------------------------
Ronald L. Havner, Jr.
Vice President - Storage Equities, Inc.
(principal financial and accounting
officer)
9
<TABLE> <S> <C>
<PAGE>
<S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> JUN-30-1995
<CASH> 2,466,000
<SECURITIES> 0
<RECEIVABLES> 66,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,532,000
<PP&E> 103,956,000
<DEPRECIATION> (30,609,000)
<TOTAL-ASSETS> 76,047,000
<CURRENT-LIABILITIES> 942,000
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 41,747,000
<TOTAL-LIABILITY-AND-EQUITY> 76,047,000
<SALES> 7,791,000
<TOTAL-REVENUES> 7,851,000
<CGS> 2,919,000
<TOTAL-COSTS> 2,919,000
<OTHER-EXPENSES> 1,824,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 146,000
<INCOME-PRETAX> 1,278,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,278,000
<EPS-PRIMARY> 7.21
<EPS-DILUTED> 0.000
</TABLE>
